The EC expects Lithuania's GDP to grow 3.1 percent this year, which is 0.4 percentage points more than forecast in May (2.7 percent).

In its summer forecasts, the EC states that "a strong labor market situation and the reduction in labor taxes supported private consumption, while a pick-up in the usage of EU funds boosted investment and exports proved resilient in the face of negative global trade prospects."

And Lithuania's economy should expand 2.4 percent in 2020, unchanged from the previous forecast. "Domestic demand is projected to further drive economic growth. On the other hand, a weak outlook for Lithuania’s main trading partners is expected to lead to a more notable deceleration in export growth," the Commission said.

The average annual inflation forecast was lifted by 0.1 percentage points to 2.2 percent for this year, and the 2020 forecast was left unchanged at 2.1 percent.

According to the EC, "as oil prices are assumed to fall, energy prices are expected to put less upward pressure on inflation than in recent years, despite the recent increases in gas and electricity prices for households. Dynamic wage growth is expected to continue to have a strong impact on service prices, accounting for about half of headline inflation."

Latvia's economy is expected to grow 3 percent this year and 2.8 percent next year, and growth in Estonia should stand at 2.9 and 2.3 percent respectively.

The EU economy should expand 1.4 percent this year and growth is expected to step up 1.6 percent next year, with growth rates of 1.2 and 1.4 percent respectively expected in the eurozone.